Maintaining the momentum

Maintaining the momentum • Solid financial results and operational performance • Adding new barrels from exploration and IOR • Continuing portfolio ...
Author: Sharleen Miles
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Maintaining the momentum

• Solid financial results and operational performance • Adding new barrels from exploration and IOR • Continuing portfolio management

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Solid operational performance • Increased production 8% ytd compared to 2011 average

Equity production mboe/d

• Strong gas sales

2193

1980

1811

1994

11%

17%

3%

10%

1971

1692

1764

1808

• Liquids production as expected • Delivered maintenance according to plan • Ramp up of international production

2011 mboe/d

3

Solid financial results • Good trading results

3Q 2012 NOK bn

• Strong refinery margins • Improving gas prices

14.5

40.9

47%

4%

(0.9)

40.0

(28.1)

(7%)

11.9 4%

3Q 2011 NOK bn 9.9

4

39.3

3.8

43.1

(31.7)

11.4

Adjusted earnings by segment NOK bn

Business area

3Q 2012

3Q 2011

Adjusted earnings

Adjusted earnings

pre tax

after tax

pre tax

after tax

31.1

8.2

35.8

8.9

International D&P

4.4

1.8

4.1

2.1

Marketing, Processing & Renewable energy

4.1

1.7

2.5

0.0

Fuel & Retail

0.0

0.0

0.6

0.5

Other

0.4

0.2

0.1

(0.1)

40.0

11.9

43.1

11.4

D&P Norway

Total adjusted earnings

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Robust financial position Further strengthening our balance sheet

Growing operating cash flow3)

NOK bn

USD bn, first nine months

Cash flow from underlying operations Taxes paid 188 1)

(77)

19 Cash flows from sale of assets and Cash flows business to investments 29 2)

17

(84) 13

Dividend paid

10

(21)

1. 2. 3.

6

Income before tax (161) + Non cash adjustments according to definitions (27) Including cash payment related to the sale of Gassled received in 1Q 2012, the sale of licences to Centrica and the sale of Statoil Fuel and Retail ASA Growing operating cash flow defined as cash flow from underlying operations minus taxes paid, exchange rate USD/NOK 6.

Strengthening capacity for high-value growth Delivering value-creating portfolio management

Continue portfolio management to enhance value creation

Apply technology to expand in unconventionals

Reinvesting for highvalue long-term growth

Proceeds (USD bn), selected divestments

Selected acquisitions Revitalising NCS w/high value barrels Edvard Grieg, undiscl. 2012

Revitalise NCS with high value barrels

Production above 2.5 million boe/d in 2020

Develop a leading global exploration company

Realising >USD 6 bn gains from strategic divestments

Expanding in US onshore Bakken, USD 4.5 bn 2011

Create value from a superior gas position

1.45*

Build material positions in 3-5 new offshore business clusters

+ new asset** Accounting gain

* Including IPO, exit, dividends & deconsolidated debt ** 15 % stake in the Edvard Grieg license in the North Sea

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Creating value from superior gas position Snøhvit, NOK 1 bn 2011

On track • 8% production growth • Around 3 per cent CAGR in production 2010-2012

• Organic capex of around USD 18 billion • Exploration activity at around USD 3.5 billion • •

~ 45 wells in 2012 ~ 20 high impact wells 2012-14

• Maintenance

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4Q: ~30 000 boed



Full year: ~50 000 boed

Supplementary Information Items impacting net operating income

11

Indicative PSA effect

21

Tax rate reconciliation

12

Reconciliation of adjusted earnings to net operating income

22

Net financial items

13

Forward looking statements

23

Development in net debt to capital employed

14

Investor Relations in Statoil

24

Long term debt portfolio redemption profile

15

Adjusted earnings breakdown – MPR

16

Statoil production per field – DPN

17

Statoil equity production per field – DPI & DPNA

18

Exploration Statoil group

19

Refining margin and methanol price

20

10

Items impacting net operating income Q3 3Q 2012

(NOK billion)

3Q 2011

Before tax

After tax

Before tax

After tax

0.0

0.0

4.8

4.1

DPN

0.0

0.0

0.0

0.0

DPI

0.0

0.0

0.9

0.9

MPR

0.0

0.0

3.9

3.2

0.8

0.6

(3.3)

(1.3)

DPN

(0.1)

0.1

(1.9)

(0.4)

DPI

0.1

0.1

0.0

0.0

MPR

0.8

0.5

(1.4)

(0.9)

(0.1)

(0.1)

(0.8)

(0.2)

Impairments

Impact of accounting for derivatives

(Overlift)/Underlift DPN

0.4

0.1

(0.6)

(0.1)

DPI

(0.5)

(0.2)

(0.2)

(0.0)

(1.7)

(1.6)

3.0

3.9

Operational Storage (MPR)

(1.1)

(0.9)

0.3

0.2

Other adjustments (DPN+DPI)

(0.1)

(0.0)

0.9

0.6

(Gain)/Loss sale of asset (DPN+DPI+MPR)

(0.9)

(0.5)

0.1

0.1

Currency effects fixed assets (MPR)

0.0

(0.3)

0.0

0.1

Currency effects fixed assets (DPI)

0.0

(0.2)

0.0

1.7

Eliminations

0.4

0.3

1.7

1.2

(0.9)

(1.1)

3.8

6.5

Other

Adjustments to net operating income

11

Tax Rate reconciliation 3Q 2012

(NOK billion)

Adjusted Earnings

Tax on Adjusted Earnings

Tax Rate

D&P Norway

31.1

(22.9)

74 %

D&P International

4.4

(2.6)

60 %

Marketing, Processing & Renewable energy

4.1

(2.4)

58 %

Other

0.4

(0.2)

45 %

Total Adjusted Earnings

40.0

(28.1)

70.4 %

Adjustments

0.9

0.2

Net Operating Income

40.9

(27.9)

68.3 %

Tax on NOK 4.7 bn. Taxable Currency gains

1.3

FX and IR derivatives

2.6

Gains and Impairment

0.7

(0.8)

Financial items excluding FR and IR derivatives

(0.3)

0.6

Net financial income

3.0

(1.4)

48%

Income before tax

43.9

(29.4)

66.9

12

Net Financial Items 3Q 2012 Net foreign exchange gains/losses

NOK bn

Interest income and other financial items

Interest and other finance expenses

Gains/losses derivative financial instruments

(1.2)

1.3

0.4

(2.5)

(3.4)

3.0

2.6

0.6 0.3

13

Net financial items 3Q 12

Development in Net Debt to Capital Employed Net debt to capital employed ratio*

Net financial liabilities (NOK bn)

30% 90.0

28%

76.5

77.4

26%

76.0 20%

60.0

50.0**

8.3** 41.7

21%

43.5

15%** 2%**

10.3**

13%

34.3

30.0

3%** 10%

0%

0.0

2009

2010

2011

1Q 12

2Q 12

3Q 12

* Net debt to capital employed ratio = Net financial liabilities/capital employed ** Adjusted for increase in cash for tax payment

14

13%

10%

2009

2010

2011

1Q 12

2Q 12

3Q 12

Long Term Debt Portfolio Redemption profile 30.09.2012

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Marketing, Processing & Renewable energy

Adjusted Earnings - Break-down 4.1

Summary • Crude 2.5

oil processing, marketing and trading achieved higher refinery margins, and also higher margins from trading of gas liquids and crude oil.

• Natural

Gas achieved higher margins from gas sales and positive contribution from trading activities, but this was offset by lower Gassled ownership

3Q 2012

16

3Q 2011

DPN 3Q 2012

Statoil Equity Production per Field

*1. Statoil share in Heidrun 38.56% in January. 13.27% share for oil production from February. New owner share from 01 June 13.11%. Make-up period start 01 July with ownershare 0% and no Statoil production rest of the year. *2. Statoil share of the reservoir and production at Heimdal is reduced 01 May from 29,87% to 19,87 %. The ownershare of the topside facilities is equal to 39.44% and are reduced to 29,443% *3. Statoil share reduced in Kvitebjørn 01 May 2012 from 58.55 – 39.55% *4. Norne 39.10%, Urd 63.95% *5. Oseberg 49.3%, Tune 50.0% *6. Sleipner Vest 58.35%, Sleipner Øst 59.60%, Gungne 62.00% *7. Snøhvit ownershare 33.31% to 31 January. New ownershare from 01 February 36.79% *8. Statfjord Unit 44.34%, Statfjord Nord 21.88%, Statfjord Øst 31.69%, Sygna 30.71% *9. Statoil share in Vale is reduced 01 May from 28.85% to 0% *10. Exit of Skirne from 10% to 0%

-

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DPI & DPNA 3Q 2012

Statoil Equity Production per Field

18

Exploration Statoil group Exploration 2012 YTD Exploration Expenses (in NOK billion)

2011

Full year 2011

4.9 -1.3 1.6

4.9 -2.3 0.7

18.8 -6.4 1.5

Exploration Expenses IFRS

5.2

3.3

13.8

Items impacting

0.0

-0.6

0.3

Exploration Expenses Adjusted

5.2

2.7

14.2

Exploration Expenditure (Activity) Capitalized Exploration From Previous Years

Third quarter 2012

Exploration Activity Exploration Expenses (in NOK billion)

19

Third quarter 2012

2011

Full year 2011

Norw ay International

1.3 3.9

1.1 2.1

5.1 8.7

Exploration Expenses IFRS

5.2

3.3

13.8

Refining margin and methanol price

Refining margins USD/bbl

Methanol contract price

2012

20

2011

2010

Indicative PSA Effects Indicative PSA effect (mmboe/d)

Assumed oil price 2012

• PSA effects in 2012 is expected to be slightly lower than in 2011 for comparable prices • Around 65% of the international equity production in 2012 is subject to PSA

21

Reconciliation of Adjusted Earnings to Net Operating Income

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Forward looking statements This presentation contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use words such as "ambition", "continue", "could", "estimate", "expect", "focus", "likely", "may", "outlook", "plan", "strategy", "will" and similar expressions to identify forward-looking statements. All statements other than statements of historical fact, including, among others, statements regarding future financial position, results of operations and cash flows; changes in the fair value of derivatives; future financial ratios and information; future financial or operational portfolio or performance; future market position and conditions; business strategy; growth strategy; future impact of accounting policy judgments; sales, trading and market strategies; research and development initiatives and strategy; market outlook and future economic projections and assumptions; competitive position; projected regularity and performance levels; expectations related to our recent transactions and projects, such as the Rosneft cooperation, developments at Johan Sverdrup, the divestment of Gasnor and the sale of producing assets in the Gulf of Mexico; completion and results of acquisitions, disposals and other contractual arrangements; reserve information; future margins; projected returns; future levels, timing or development of capacity, reserves or resources; future decline of mature fields; planned maintenance (and the effects thereof); oil and gas production forecasts and reporting; domestic and international growth, expectations and development of production, projects, pipelines or resources; estimates related to production and development levels and dates; operational expectations, estimates, schedules and costs; exploration and development activities, plans and expectations; projections and expectations for upstream and downstream activities; oil, gas, alternative fuel and energy prices; oil, gas, alternative fuel and energy supply and demand; natural gas contract prices; timing of gas off-take; technological innovation, implementation, position and expectations; projected operational costs or savings; projected unit of production cost; our ability to create or improve value; future sources of financing; exploration and project development expenditure; effectiveness of our internal policies and plans; our ability to manage our risk exposure; our liquidity levels and management; estimated or future liabilities, obligations or expenses and how such liabilities, obligations and expenses are structured; expected impact of currency and interest rate fluctuations; expectations related to contractual or financial counterparties; capital expenditure estimates and expectations; projected outcome, objectives of management for future operations; impact of PSA effects; projected impact or timing of administrative or governmental rules, standards, decisions, standards or laws (including taxation laws); estimated costs of removal and abandonment; estimated lease payments, gas transport commitments and future impact of legal proceedings are forward-looking statements. You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including the risks described above in "Risk update".

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These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including levels of industry product supply, demand and pricing; price and availability of alternative fuels; currency exchange rate and interest rate fluctuations; the political and economic policies of Norway and other oil-producing countries; EU directives; general economic conditions; political and social stability and economic growth in relevant areas of the world; the sovereign debt situation in Europe; global political events and actions, including war, terrorism and sanctions; security breaches; changes or uncertainty in or non-compliance with laws and governmental regulations; the timing of bringing new fields on stream; an inability to exploit growth or investment opportunities; material differences from reserves estimates; unsuccessful drilling; an inability to find and develop reserves; ineffectiveness of crisis management systems; adverse changes in tax regimes; the development and use of new technology; geological or technical difficulties; operational problems; operator error; inadequate insurance coverage; the lack of necessary transportation infrastructure when a field is in a remote location and other transportation problems; the actions of competitors; the actions of field partners; the actions of governments (including the Norwegian state as majority shareholder); counterparty defaults; natural disasters and adverse weather conditions, climate change, and other changes to business conditions; an inability to attract and retain personnel; relevant governmental approvals; industrial actions by workers and other factors discussed elsewhere in this report. Additional information, including information on factors that may affect Statoil's business, is contained in Statoil's Annual Report on Form 20-F for the year ended December 31, 2011, filed with the U.S. Securities and Exchange Commission, which can be found on Statoil's website at www.statoil.com. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this report, either to make them conform to actual results or changes in our expectations.

Investor Relations in Statoil Investor Relations Europe Hilde Merete Nafstad

Senior Vice President

[email protected]

+47 95 78 39 11

Lars Valdresbråten

IR Officer

[email protected]

+47 40 28 17 89

Jesper Børs-Lind

IR Officer

[email protected]

+47 91 75 64 64

Erik Gonder

IR Officer

[email protected]

+47 99 56 26 11

Gudmund Hartveit

IR Officer

[email protected]

+47 97 15 95 36

Mirza Koristovic

IR Officer

[email protected]

+47 93 87 05 25

Kristin Allison

IR Assistant

[email protected]

+47 91 00 78 16

Investor Relations USA & Canada Morten Sven Johannessen

Vice President

[email protected]

+1 203 570 2524

Ieva Ozola

IR Officer

[email protected]

+1 713 485 2682

For more information: www.statoil.com

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